留学生会计作业-会计专业留学作业-corporat

发布时间:2019-09-26 15:11

留学生会计作业-会计专业留学作业,会计专业留学作业-corporate ACCOUNTING

核心提示:会计专业留学作业-corporate ACCOUNTING

CASE STUDY

 

On 1 July 2008, Global Crisis  Ltd acquired 80 percent of the share capital and reserves of Magic Ltd for $540 000. On the date of control, all assets were recorded at fair values except Land which had a carrying amount of $150 000 and a fair value of $170 000..

 

The abridged balance sheet data for Magic Ltd on 1 July 2008 was as follows:

 

Share Capital                               $500 000

General Reserve                             80 000

Retained Earnings                           50 000

Revaluation Surplus                  

20 000

 

The financial data for Global Crisis Ltd and Magic Ltd at consolidation date, 30 June 2011, is as follows:

 



 
    

Global                    Crisis                     
     

Magic


 
     $
         $

STATEMENT OF COMPREHENSIVE INCOME 
 


Sales revenue
720 000
530 000


Cost of goods sold
610 000
410 000


Gross profit
110 000
120 000


Total expenses
230 000              
160 000


Trading profit
        (120 000)
(40 000)


Other revenue
          240 000
120 000


Operating profit before tax
120 000
80 000


Income tax expense
40 000
25 000


Operating profit after tax
80 000
55 000


Other Comprehensive Income
 
 


Revaluation Surplus Plant and Equip                                             
 
           20 000

     
Less Income Tax                                                                              
 
          (6000)


Total Comprehensive Income
         80 000                  
            69 000


 
 
 


 
 
 


 
 
 


 
 
 


 
 
 


 
 
 

STATEMENT OF CHANGES IN EQUITY

Global Crisis Ltd  ($’000)

                                                  SC      GR       RS  RE Total

Balance  1/7/2010                   600      80        20     200  900 

Movement for Year

Total Comp. Income                                                  80     80

Dividend Paid                                                          (20)   (20)

Final Dividend Declared                                         (25)   (25)

 

Balance   30/6/2011               600      80        20    235    935

 

Magic Ltd ($’000)

 

Balance   1/7/2010                500     100       60    112    772

Movement for Year

Total Comp income                                       14    55      69

Dividend Paid                                                        (10) (10)

Final Dividend Declared                                        (15) (15)

 

Closing Balance                     500     100      74    142   816  

 

 

                        
 
 

STATEMENT OF FINANCIAL POSITION
Credit balances 
 


Share capital
600 000
500 000


General reserve
  80 000
100  000


Revaluation Surplus
  20 000
74 000


Retained earnings
235 000
142 000


Other Liabilities
125 000
31 000


Dividend payable
25 000
           15 000


Accumulated dep’n – Plant and Equipment
115 000
88 000


 
 
 


 
 
 


Total Credits 1200 000
950 000


 
 
 

Debit balances 
 

  
 
 


Accounts receivable
80 000
30 000


Inventory
100 000
170 000


Shares in Magic Ltd
540 000
          -


Investment in Lijiang Ltd
100,000
          -


Land
      100 000
150 000


Plant & equipment
200 000
450 000


Deferred Tax Asset
50 000
40 000


Other assets
30 000
110 000


Total Debits 1 200 000
 

 

 

 

Additional information:

The following transactions took place between Global Crisis Ltd and Magic Ltd:

(1)                 During the year ended 30 June 2011 Magic Ltd sold inventory to Global Crisis Ltd for $23 000, recording a profit before tax of $3 000. Global Crisis Ltd has since resold half of these items.

(2)                 During the year ended 30 June 2011 Global Crisis Ltd sold inventory to Magic Ltd for $18 000, recording a profit before tax of $2 000. Magic Ltd has not resold any of these items.

(3)                 On 1 June 2011 Magic Ltd paid $1 000 to Global Crisis Ltd for services rendered.

(4)                 During the year ended 30 June 2010 Magic Ltd had sold inventory

to Global CrisisLtd. At 30 June 2010 Global Crisis Ltd still had inventory on hand on which Magic Ltd had recorded a pre tax profit of $4 000

 

   

 

(5)                 Goodwill on acquisition:

-        Goodwill on acquisition has been subject to annual impairment testing each year that the group entity has been in existence. Previous impairment writedowns totalled $3800

-        For the current year, the directors advise that an impairment write down of goodwill of $5 000 is required.

 

6)         On 1 July 2010 Magic Ltd sold Plant and Equipment which had cost $180 000 to

Global Crisis Ltd for $150 000, recording a profit of $20 000 before tax. Global Crisis Ltd applies a 10% per annum straight line method of depreciation for these assets

7)        Global Crisis Ltd adopts the partial goodwill method in its consolidated accounts

 

8)     http://www.dxlws.com/liuxueshengzuoye/

The tax rate for all companies is 30%.

 

Equity Investment  details:

 

On 1 January 2011 Global Crisis Ltd acquired a 40% holding in Lijiang Ltd for $100 000. The directors of Global Crisis believe that this holding constitutes significant influence. At the date of acquisition the shareholder’s equity of Lijiang Ltd was as follows:

Share Capital           $160 000

General Reserve         20 000

Retained Earnings       40 000

All assets of Lijiang Ltd are stated at fair value.

 

Other Information

 

For the period 1 January 2011 to 30 June 2011 Lijiang Ltd made a net profit after tax of

$42 000 and paid a dividend of $10 000 on 1 April 2011.

During the period 1 January 2011 to 30 June 2011 Global Crisis Ltd sold inventory to Lijiang Ltd for $20 000. This had cost Global Crisis Ltd $16 000 and was still held by Lijiang Ltd at 30 June 2011

At 30 June 2011 the directors of Global Crisis Ltd believe that goodwill arising on the investment in Lijiang Ltd is impaired and should be written down by $1 200.

 

 

REQUIRED:

 

a. Prepare the consolidation journal entries for consolidating the accounts of Global Crisis Ltd  and Magic Ltd for the year ended 30 June 2011.

 

b. Prepare and post  the journal entries required to record Global Crisis Ltd’s

interest in Lijiang Ltd at 30 June 2011

c. Prepare the consolidation worksheet

d. Show the calculation of the non controlling interest at 30 June 2011

e. Prepare the consolidated financial statements for the year ended 30 June 2011

 

7+ 3 +2+3+2 =  17 marks

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